LIVE MARKETS-U.S. futures point to drop at the open after Moody's downgrade
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U.S. FUTURES POINT TO DROP AT THE OPEN AFTER MOODY'S DOWNGRADE
U.S. equity index futures were pointing to a sharply lower open to kick off the trading week on Monday, after Moody's downgraded the credit rating of the United States late on Friday.
Moody's downgraded the U.S. by a notch to "Aa1" from "Aaa", citing rising debt and interest "that are significantly higher than similarly rated sovereigns".
Along with stock futures, the dollar index was weaker, while Treasury yields jumped, with the 10-year Treasury yield up nearly 12 basis points after reaching a five-week high of 4.56%.
Analysts at Goldman Sachs said they see the downgrade "as aligned with recent market moves on this same theme, rather than leading the market or presenting some new information, but note these events can focus the market as it appears to be doing today."
Markets will hear from a host of Federal Reserve officials on Monday, and Atlanta Fed president Raphael Bostic said earlier in the day that the central bank may only be able to cut interest rates by a quarter point this year, and that the impact of the downgrade could ripple through the economy.
Meanwhile, Federal Reserve Bank of New York President John Williams said the Fed's rate policy is is well positioned, but slightly restrictive.
The economic calendar is light, with leading economic indicators scheduled for release shortly after the market opens.
Below is your premarket snapshot:
(Chuck Mikolajczak)
MONDAY'S EARLIER LIVE MARKETS POSTS:
ARE EUROPEAN EQUITY VALUATIONS HIGH? CLICK HERE
THE DOLLAR'S FISCAL FROWN CLICK HERE
FEES POWER BANK BEATS CLICK HERE
LOWER BUT CALMLY CLICK HERE
LOTS GOING ON, EUROPEAN FUTURES OUTPERFORM CLICK HERE
MORNING BID: SO, CHINA SHOULD CONSUME MORE AND THE US LESS? CLICK HERE
Premarket levels May 19
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